Prof Soludo implicated in the Securency bribery scandal

Details: Category: POLITICS; Published on Monday, 05 October 2009 09:17; Written by Elombah.com

The former CBN governor was named as one of the officials that received bribes allegedly paid to Nigerian officials in order to secure contracts for the printing of polymer naira notes.

Prof Soludo implicated in the Securency bribery scandal

These are not happy times for the former Governor of the Nigerian apex bank, Professor Charles Chukwuma Soludo. As his gubernatorial ambitions falters amidst the high-wire intrigues of Anambra politics, the former CBN Governor has every reason to be a worried man.

A knowledgeable source has revealed to Elombah.com that the former CBN governor was named as one of the officials that received bribes allegedly paid to Nigerian officials in order to secure contracts for the printing of polymer naira notes.

Elombah.com last Friday carried a report by Sydney Morning Herald that A Reserve Bank of Australia company is under federal police investigation for allegedly bribing Nigerian officials to win a banknote deal in the most serious development yet in the cash-for-contracts scandal.

The probe centres on a series of multimillion-dollar payments by the RBA firm Securency to offshore accounts of two British-based businessmen, BenoyBerry and Mike Harding, who boast high-level political contacts in Britain and Africa.

The firm, Securency, was found to have made a series of multimillion-dollar payments into offshore bank accounts of two British-based businessmen linked to the currency printing deal.

While the Central Bank of Nigeria [CBN] has promised to launch an investigation to determine if any of its past or present officials received bribes allegedly paid to Nigerian officials in order to secure contracts for the printing of polymer naira notes, Elombah.com investigations reveal that the Federal Government and indeed the CBN cannot claim that the allegation that the RBA firm Securency bribed Nigerian officials to secure the Polymer naira notes contracts is strange to them.

A confidential source has revealed to Elombah.com that The Australia Federal Police Authority early this year sent a high level confidential security memo to the Presidency through the Office of the National Security adviser detailing bribery probe that centers on a series of multimillion-dollar payments by RBA firm Securency into offshore bank accounts of two British-based businessmen for onward transfer to Nigerian Government Officials to win a bank-note deal in the most serious development in a cash-for-contracts scandal.

Australian Federal Police taskforce had been investigating Securency for possible breaches of Australia's criminal code, which outlaws payments to foreign officials.

Prominent amongst the names that featured in the secret memo is that of then CBN Governor, Charles Chukwuma Soludo, senior officials of the finance ministry and a former president.

Upon receipt of the Memo, a livid president Yar’adua was said to have summoned the visibly shaken CBN Governor and all those involved to the Villa. It was thereafter resolved that the scandal could potentially embarrass the Government and that efforts should be made to conceal the news as much as possible.

As a damage control measure, the CBN Governor was to be relieved of his job after the expiration of his tenure and will not be reappointed.

My Source insists that the above resolution was reached after the intervention of James Ibori, the former Governor of Delta State on behalf of Soludo.

President Yar’adua was reportedly so angry that he had told the former Governor that he would do everything in his power to ensure that Soludo does not pick the PDP ticket for the 2010 gubernatorial slot for Anambra election. Soludo had never hidden his unbridled and inordinate ambition to run for Anambra Governorship race come 2010.

The probe is focused on large commission payments by Securency to politically connected foreign middlemen, often into tax haven accounts owned and operated by Nigerian Officials.

One Mr.A.B.Okauro, the former head of National Financial Intelligent Unit(NFIU) and currently the Director –General of Governors Forum is said to be the errand boy of all corrupt Nigerian official who needs advice and tips on how to launder and operate tax haven accounts.

He is reported to have personally opened and ensured the safe egress of billion of naira of corrupt money out of Nigeria and was reported to have acted as go-between for one Dr. Berry and Soludo’s CBN.

An investigation into Securency's Nigeria activities can reveal that the RBA firm paid millions of dollars into a tax haven bank account belonging to Dr Berry. The total figure is not known.

Mr Harding, associated with the British Conservative Party, lived in Africa for 20 years working for British company Unilever. According to reports, Mr Harding directs some of his earnings into a company account in a secretive tax-free business zone at Sharjah airport in the United Arab Emirates.

Dr Berry and Mr Harding were paid to help Securency, which is half-owned by the RBA and British firm Innovia Films, promote its polymer currency across Africa and win a 2006 contract from the Central Bank of Nigeria.

Mr Harding said the Nigeria negotiations were handled by the company's Africa manager, Peter Chapman, and Dr Berry, a long time friend and business associate of Professor Charles Soludo. Mr Chapman recently resigned and is believed to be in Brazil.

Despite Mr Harding's attempts to distance himself from Dr Berry, corporate records show the pair to be the only shareholders in a British company called Global Secure Currency Ltd, registered in 2004.
Corporate records show Lord Steel and Dr Vadher were Global Secure Currency Ltd directors between September 2005 and August 2006.
Dr Berry, who is also Burundi's honorary consul to India, is among the country's worst debtors responsible for the rot and current credit crunch threatening Nigerian some Banks. He was last month threatened with prosecution by the Central Bank of Nigeria as his debt profile is said to be in the region of 30 billion naira. Most of the debts peaked under Soludo’s Watch in CBN

The current CBN Governor Lamido Sanusi told Daily Trust that the Federal Government will look into the matter and would determine if Central Bank officials received the alleged payoff.

According to Daily Trust, He said he read a printed copy of the Australian newspaper’s story, but was yet to get any more information on the developing scandal. He said, “I am aware of the story, but I am not aware of the facts. I have not investigated. I was given the story printed from the internet. I don’t know how true it is.”

Sanusi also said, “I imagine the EFCC and the police will investigate, and if there is actually any involvement of officials in the Central Bank as a result of investigation, just like it was done in the case of other companies in other parts of the world, I am sure government will look into it.”

Asked where the new polymer currency notes that CBN rolled out last week were printed, the governor said, “I don’t know. I don’t know the details. I haven’t heard of that company. All I know is that if it is established in the course of any kind of investigation that there was a CBN official involved, present or past…I am sure there would be an investigation.”

The Governor however said the Nigeria Security Printing and Minting Company, which prints currency for the Central Bank, often uses different companies for the supply of different materials. He said, “It uses a different company for printing, a different company for the supply of papers, a different company for the supply of ink, and a different company for the provision of security equipment.

“I don’t know what this is in connection with. Just before I left Nigeria, I was alerted that there was a story on the internet by an Australian newspaper alleging that there were some people that received the bribe as a result of a contract that was given. Those people were unnamed. I don’t know what level they were. I don’t know if the people were in Central Bank or it. We don’t know the facts until the investigation happens, and what those allegations were and who are the people alleged to have taken the money. For all we know, maybe they are not even Central Bank officials. I am not saying they are not.”

Sanusi said as a Nigerian, he is worried about anything that alleges corruption and “I am concerned about the image of the country but I do not have anything in that story that says to me this is something given to CBN officials, or who gave it to them or what is in connection with. But all I know is it could be just a newspaper allegation. I am not saying it is, but as investigation goes on and as facts unfolds, when there is need for investigation. There would be an investigation.”

BusinessDay further reported that among those implictated are a senior British politician, Lord David Steel, and his adviser, Atul Vadher, who were involved with Dr Berry and Mr Harding in another venture, Global Secure Currency Ltd, about the same time the pair were promoting Securency in Africa.

Lord Steel is a co-founder and former leader of the Liberal Democrats party, inaugural presiding officer of the Scottish Parliament, a life member of the House of Lords and vice-president of the Royal African Society.

His long-time assistant, Dr Vadher, has also worked as an adviser to at least two African governments and contested the 1999 European Parliament elections for the Liberal Democrats. BusinessDay is not suggesting any wrongdoing by Lord Steel or Dr Vadher.

Securency’s payments to Dr Berry and Mr Harding, coupled with their political links in Britain, are likely to attract the interest of Britain Serious Fraud Office.

An Australian Federal Police task-force has been investigating Securency since May for possible breaches of Australia’s criminal code, which outlaws payments to foreign officials.

It is focused on large commission payments by Securency to politically connected foreign middlemen, often into tax-haven accounts.

An investigation by BusinessDay into Securency’s Nigerian activities has revealed it paid millions of dollars into a tax-haven bank account belonging to Dr Berry. The total figure is not known.

In 2006, Dr Berry's security technology company, Contec Global, was investigated by Uganda's corruption watchdog after its internal security agency accused the company of paying a $1.8 million bribe to a minister.

The bribery allegation could not be proved, but a report found the Ugandan minister had been improperly ''fronting'' for DrBerry's firm because he stood to benefit from the deal. Dr Berry has not responded to inquiries from BusinessDay.

An overseas-based source aware of Securency's dealings in Africa said the firm paid more than $1 million into accounts tied to two companies effectively overseen by Mr Harding, including one called JH Marketing Africa 2000.

Mr Harding, a 72-year-old associated with the British Conservative Party, lived in Africa for 20 years working for British firm Unilever.

BusinessDay has found that Mr Harding directs some of his earnings into a company account in a secretive tax-free business zone at Sharjah airport in the United Arab Emirates.

UAE officials said they could only disclose who owned the business if given a ''judicial order''. But BusinessDay linked the UAE entity that received the Securency payment to Mr Harding by matching its phone number to a telephone listing in his home town of Bracknell.

Mr Harding, who initially denied any association with Securency when questioned by BusinessDay earlier this year, said last week he could not discuss the payment from Securency to his UAE company because it had become ''a legal matter''.

Dr Berry and Mr Harding were paid to help Securency, which is half-owned by the RBA and the British firm Innovia Films, promote its polymer currency in Africa and win a 2006 contract from the Central Bank of Nigeria.

Mr Harding said the Nigerian negotiations were handled by the company's manager for Africa, Peter Chapman, and DrBerry. Mr Chapman recently resigned and is believed to be in Brazil.

''I had nothing to do with the supply contract to Nigeria. It was all handled by Mr Chapman and [Dr] Berry. I became involved after that was agreed,'' Mr Harding said.

Despite Mr Harding's attempts to distance himself from Dr Berry, corporate records show the pair to be the only shareholders in a British company called Global Secure Currency Ltd, registered in 2004.

Corporate records show Lord Steel and Dr Vadher were directors of Global Secure Currency between September 2005 and August 2006.

Mr Harding denied any involvement in the shell company, saying he did not pay for the shares allotted to him. ''I won't have anything to do with shell companies … they can be used to launder money,'' he said.

Lord Steel and Dr Vadher were also directors of Contec Global during the same period. Corporate records show the pair remain small shareholders in Contec Global.

Lord Steel told BusinessDay this week his business association with Dr Berry was shortlived and that neither he nor Dr Vadher received any directors' fees or attended board meetings.

The RBA continues to refuse to discuss Securency's overseas activities, citing continuing inquiries by the AFP and the accounting firm KPMG.

In the RBA's recent annual report, its governor, Glenn Stevens, expressed confidence in the way it had supervised Securency's operations.